RTTNews - The dollar tailed off versus other major currencies on Wednesday after President Barack Obama laid out a sweeping agenda for regulatory reform of the financial system.

Among reforms, Obama proposed granting the Federal Reserve the authority to scrutinize firms that are large enough to pose a systemic risk to the financial markets.

While the dollar came under some pressure following the announcement, on the whole its been a week a stabilization for the world's reserve currency. Although the buck has drifted lower against the yen, it has managed to consolidate recent gains versus the euro and sterling after a tough April and May.

The dollar slipped to a fresh 2-week low of 95.50 versus the yen, having only been above the century mark in 2009 for a few days in April.

Wednesday, the Bank of Japan and the Cabinet office raised their economic assessment for the second straight month as some of the leading indicators suggested that the worst of the recession is over

The dollar eased about a penny to 1.3950 versus the euro, moving away from a 4-week high near 1.3750 set last week. Versus the sterling, the dollar remained choppy near 1.6400, staying near a 6-month low of 1.6662 set early in June.

In economic news from the US, consumer prices showed a modest increase in the month of May, according to a report released by the Labor Department on Wednesday, with the mild price growth coming in below the expectations of economists.

The report showed that consumer prices edged up 0.1 percent in May after coming in unchanged in April. Economists had been expecting a somewhat more substantial increase in prices of about 0.3 percent.

Elsewhere, the eurozone's trade surplus in April improved from March as well as from the year-ago period, a report from the Eurostat showed Wednesday.

The trade surplus increased to EUR2.7 billion in April from a revised surplus of EUR1.8 billion in March, and a EUR2.2 billion surplus last year. For March, the trade surplus was initially reported as EUR0.4 billion.

Meanwhile, the number of Britons claiming jobless benefits reached the highest level since July 1997, although the increase was less than expected, official data showed Wednesday.

The claimant count was 1.54 million in May, up 39,300 over the previous month, the Office fConsumer prices showed a modest increase in the month of May, according to a report released by the Labor Department on Wednesday, with the mild price growth coming in below the expectations of economists.

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